Tencent (00700.HK) AI-powered growth drives robust performance across all business segments
17 Sep 2025Financial performance
In the second quarter of 2025, the company reported total revenue of CNY 184.5 billion,
representing a year-on-year increase of 14.5%. In terms of profitability, operating profit
reached CNY 60.1 billion, up 18.5% year-on-year, with the operating profit margin rising
from 31.5% in the same period last year to 32.6%. Net profit attributable to equity holders
of the company was CNY 55.6 billion, reflecting a year-on-year growth of 16.8%.
By segment, Value-added Services revenue in 2Q25 saw robust growth, increasing by 15.9%
year-on-year to CNY 91.4 billion, primarily driven by the sustained stability of top games.
Online Marketing Services revenue grew by 19.7% year-on-year to CNY 35.8 billion,
benefiting from improved user engagement, continuous AI upgrades to the advertising
platform, and optimizations in the WeChat transaction ecosystem. FinTech and Business
Services revenue increased by 10.1% year-on-year to CNY 55.5 billion, mainly due to growth
in consumer loan services, wealth management services, as well as increased cloud services
revenue and merchant service fees.
Performance Summary
Gaming Business
In the second quarter of 2025, the company’s game revenue increased by 22.1% year-onyear to CNY 59.2 billion, accounting for 32.0% of total revenue, up from 30.1% in the same
period last year. Among this, international market game revenue reached CNY 18.8 billion, a
year-on-year increase of 35.3%, primarily driven by revenue growth from PUBG MOBILE and
contributions from newly launched games. Domestic market game revenue grew by 16.8%
year-on-year to CNY 40.4 billion, benefiting from sustained revenue growth of evergreen
titles and the strong performance of the new game Delta Action, which achieved an average
DAU of over 20 million in July, ranking among the top five in the industry by daily active
users and top three by revenue. With a broader and more platform-diversified game
portfolio, management expects reduced volatility in overall game revenue growth.
Social Networks Business
In the second quarter of 2025, the company’s Social Networks revenue increased by 6.3%
year-on-year to CNY 32.2 billion, primarily driven by growth in game virtual item sales, live
streaming services from Channels, and music subscription revenue. WeChat’s user traffic
continued to grow in 2Q25, with combined MAU reaching 1.411 billion, up 2.9% year-onyear. Meanwhile, monthly active accounts on QQ’s smart terminal saw a slight decline
compared to the same period last year. The number of registered paid value-added service
subscriptions remained stable at 264 million year-on-year. Tencent Music’s paid members
recorded healthy growth, while Tencent Video’s subscription count experienced a decline.
Marketing Services Business
In the second quarter of 2025, the company’s online marketing services revenue increased
by 19.7% year-on-year to CNY 35.8 billion, primarily driven by AI-powered upgrades in
advertising technology and new ad inventory from the Channels transaction ecosystem.
According to management, the company enhanced its AI capabilities across advertising
creation, placement, recommendation, and performance analysis, significantly improving ad
click-through rates, conversion rates, and return on investment. This was achieved by
deploying an upgraded foundational model to revamp the advertising platform architecture,
which comprehensively analyzes cross-application/service ad click-through rates,
transaction data, and user interactions with text, images, and videos to determine user
interests in real time and optimize ad performance.
About the author

Megan Tao
Analyst
Research
She graduated from the University of New South Wales with a bachelor's degree in accounting and finance and from the University of Hong Kong with a master's degree in finance. He is currently a licensed analyst at Phillip Securities, mainly responsible for research in the TMT and semiconductor sectors, and has worked in securities companies and family offices.
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About the author

Megan Tao
Analyst
Research
She graduated from the University of New South Wales with a bachelor's degree in accounting and finance and from the University of Hong Kong with a master's degree in finance. He is currently a licensed analyst at Phillip Securities, mainly responsible for research in the TMT and semiconductor sectors, and has worked in securities companies and family offices.